Australia’s Steadfast Cuts Planned IPO Size By 29%

Australian insurance broking network Steadfast Group has cut the size of its planned initial public offering by 29% to 334 million Australian dollars (US$306 million), according to a replacement prospectus seen by MoneyBeat.

However, it scaled back the size of the deal as brokers within its network chose to take shares rather than cash in return for selling part of their business to Steadfast. Upon listing August 14, Steadfast staff and brokers within its 280-strong network will own between 37% and 41% of the stock, which will have a market value of up to A$587 million.

Its indicative price range of between A$1.00 and A$1.20 hasn’t changed. The IPO won’t go ahead if a final price of at least A$1.00 a share isn’t hit following the July 30 bookbuild, managed by J.P.Morgan and Macquarie Group Ltd.

The moribund Australian equity capital market has seen just 15 IPOs so far this year, raising US$853 million combined.